The Bank of Korea Supplies 5 Trillion Won to Commercial Banks Ahead of Chuseok

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] The Bank of Korea injected approximately 5 trillion won into commercial banks and other financial institutions to meet the increased cash demand ahead of the Chuseok holiday.

According to the Bank of Korea on the 17th, the net issuance amount of currency (issuance amount - redemption amount) supplied to financial institutions over the recent 10 business days (September 6?17) reached 4.8 trillion won.

Compared to the same period last year (the 10 business days before Chuseok), when the net issuance amount was 5.0678 trillion won, this represents a 4.8% decrease.

Jung Bok-yong, head of the Currency Planning Team at the Bank of Korea's Currency Issuance Bureau, explained, "Due to the impact of COVID-19, the income and consumption capacity of self-employed individuals decreased, leading to reduced cash withdrawals. Additionally, the national support funds before Chuseok were mainly distributed via cards and gift certificates, substituting the need for cash."

By region, during the 10 business days before Chuseok, the net issuance amount increased compared to the previous year in the Gyeonggi Headquarters (20.9%), Jeju Headquarters (11.7%), and Gwangju-Jeonnam Headquarters (7.1%), whereas the Currency Issuance Bureau (Seoul, -4.0%) and other regional headquarters generally saw a decrease.